Why do people keep saying that they're "buying futures contracts" when they're just entering into them? It doesn't cost anything to enter them, so they're not really buying anything. Yet why is it referred to as buying? Just convention?

The same question I have for selling futures contracts. It seems to me that there is no such thing. You only enter a short position, or exit your existing long position. You're not selling anything.

Maybe I am missing something completely basic? Some comments on this would be appreciated.

fc wrote:Why do people keep saying that they're "buying futures contracts" when they're just entering into them? It doesn't cost anything to enter them, so they're not really buying anything.

Au contraire, fc, you are buying something & it does cast you something.
You are buying the control of 5000 bushells of Soybeans (or 40,000lb of pig meat or 100oz of fine gold or 42,000 gallons of crude oil etc) which you can take delivery of, during the delivery month, if you so desire.
When you buy your 5000Bu (or whatever) you are putting up a cash deposit that might be 1/10th of the price of the contract. . . .aka margin.
This is money that leaves your pocket, hence it is a cost to you.
See the links below:

If you choose not to take delivery of the 5000Bu you are controlling then you can sell your futures contract prior to delivery and you will recive your deposit back less adjustments for any profits/losses that have occured during the time that you held the contract.